Ally FinancialXSWX:ALLY +1.01%68 Pretax Margin % is 17.00% as of Mar. 2026, which is 22% below its 10-year median of 21.77. GuruFocus rates XSWX:ALLY with a GF Score™ of 68/100 and a GF Value™ of CHF31.58. The stock has 8 warning signs investors should review. Among 534 Credit Services companies, Ally Financial ranks worse than 52.06% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Ally Financial Pretax Margin % Related Terms
Ally Financial Pretax Margin % Historical Data
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The historical data trend for Ally Financial's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:ALLY vs FCFS, KLAR, OMF: Pretax Margin % Comparison
For the Credit Services subindustry, Ally Financial's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ally Financial Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Ally Financial's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Ally Financial's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ally Financial (XSWX:ALLY) has a Pretax Margin % of 17.00% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ally Financial and its competitors. This is 22% below median its historical median of 21.77. Over the past decade, Ally Financial's Pretax Margin % has ranged from 9.40 to 43.91. According to the industry distribution chart, Ally Financial ranks #278 out of 534 companies in the Credit Services industry, placing it in the top 52.1%.
Is Ally Financial's Pretax Margin % too high?
Ally Financial's current Pretax Margin % of 17.00% is 22% below median its 10-year median of 21.77. Over the past 10 years, this metric has ranged from a low of 9.40 to a high of 43.91. The Credit Services industry median Pretax Margin % is 19.87. Ally Financial's value of 17.00% is 14.4% below this industry median. Based on the distribution chart, Ally Financial ranks #278 out of 534 companies in the Credit Services industry, which is below the industry midpoint. Overall, Ally Financial has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Ally Financial's Pretax Margin % compare to FCFS and KLAR?
According to the Credit Services industry distribution chart, Ally Financial ranks #278 out of 534 companies for Pretax Margin %. This places Ally Financial in the lower half of its industry. The industry median Pretax Margin % is 19.87. Ally Financial's value of 17.00% is 14.4% below this benchmark. Historically, Ally Financial's own Pretax Margin % has ranged from 9.40 to 43.91 over the past decade. While the company's 10-year median is 21.77 vs. the industry median of 19.87, Ally Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 19.87, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ally Financial's current Pretax Margin % of 17.00% is 14.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ally Financial and its competitors. For the Credit Services industry, the median Pretax Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ally Financial's current Pretax Margin % is 17.00%, which is 22% below median its own 10-year median of 21.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ally Financial stock overvalued right now?
Ally Financial (XSWX:ALLY) has a current Pretax Margin % of 17.00%. The stock's GF Value™ is CHF31.58, compared to a current price of CHF37.15 — trading 17.6% above its estimated fair value. The current Pretax Margin % is 17.00%, which is 22% below median its 10-year median of 21.77 and 14.4% below the Credit Services industry median of 19.87. Ally Financial's overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Ally Financial (XSWX:ALLY), the current Pretax Margin % is 17.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ally Financial (XSWX:ALLY) Overvalued in 2026?
Based on GuruFocus' analysis, Ally Financial stock appears to be overvalued.
The current stock price of CHF37.15 is trading 17.6% above its estimated GF Value™ of CHF31.58.
Key valuation signals for XSWX:ALLY:
Pretax Margin %: 17.00% (22% below median its 10-year median of 21.77)
GF Value™: CHF31.58 vs. price of CHF37.15 (17.6% above fair value)
Industry Position: 14.4% below the Credit Services median (#278 of 534)
No single metric tells the full story. See the XSWX:ALLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model that includes brokerage services.
68GF Score
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